Should Dell Buy Acer? Something to Think About

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With all the problems Dell has been having lately, this analysis comes as no shocker. Sanford Bernstein analyst, Toni Sacconaghi, laid out a plan for Dell to revive its fortunes by purchasing Acer. This would actually be a relatively cheap buy for Dell and the benefits may be well worth it.

A move like this could give Dell broader access to Asian and European customers where Acer does better, a stronger notebook line and a massive indirect sales channel. At the moment Dell does not sell in bricks and mortar retail stores, but Acer does, and this is something many analysts say Dell needs to move to doing.

I think customers need a change and maybe Michael Dell is now willing to back up Dell 2.0, which was designed to offer customers more of what they want (think "Dell, purely you" campaign). Whether customers want Advanced Micro Devices processors, improved product design, or Linux pre-installed options, Dell says it will offer them all.

They have already launched Dell Idea Storm, a website dedicated to users who want to leave feedback and opinions. The Tablet PC thread is getting lots of votes there and maybe if Dell ever does buy Acer, a Dell Tablet will be in the near future and not just a dream.

Buying Acer could be a quick fix for some of Dell’s issues, according to Sacconaghi.

"A combined Dell-Acer would enjoy leading share in nearly every major region of the world, strong products in both the notebook and desktop segments, and far-reaching distribution through both direct and indirect channels."

"While we have no evidence that a Dell-Acer combination is being considered by either party, we do believe such a move could make strategic and financial sense," Sacconaghi wrote. "We believe Acer could help Dell address many of the challenges it currently faces, but would represent a significant departure from Dell’s historical track record of acquisitions and from its 100 percent direct selling model."

Although there is no evidence of Dell and Acer combining, it is still a good insight. Sometime mergers benefit more people than they hurt, but sometimes they don’t, I guess that is something both companies would have to consider if they take Toni Sacconaghi’s advice.

Read More (The Register)

 

 

 

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